Bad Debt Deductions Order to Cash 
Your Virtual Credit Manager
MAY 23, 2023
Any subsequent collection expenses and bad debt write-offs are more easily recouped through additional sales than if your gross margins are low. If a customer regularly pays late, constantly takes payment deductions, generates a high return volume, or constantly raises disputes, your net profits will be negatively affected.
Your Virtual Credit Manager
JANUARY 17, 2023
There was a lot of gnashing of teeth on the part of the sales team at the beginning, but invoice accuracy improved in each subsequent month as sales began transmitting accurate pricing and terms to order processing, thereby reducing downstream disputes and payment deductions. it just might help them pay you sooner!
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Emagia
DECEMBER 3, 2024
Emagia is a leading provider of Autonomous Finance Solutions, designed to revolutionize and modernize the way enterprise finance teams operate, particularly in the Order-to-Cash (O2C) cycle. Reduces DSO, minimizes bad debt and write-offs with advanced credit risk and deductions management tools.
Your Virtual Credit Manager
JANUARY 3, 2023
” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.
Your Virtual Credit Manager
AUGUST 29, 2023
These can include: Too little time spent collecting (due to other priorities or lack of staff) Lack of training and experience Order-to-cash (O2C) process breakdowns or weaknesses Credit policy too lenient Invoice accuracy issues Collection strategy not effective Economic headwinds And, the list goes on.
Your Virtual Credit Manager
APRIL 18, 2023
Subscribe now An Overview of the AR Functions that Can Be Outsourced One option is to outsource all AR responsibilities in support of the order-to-cash (O2C) process: from billing to credit and collections to remittance processing. to minimize the chance of bad debt loss. Then you have a cost/benefit comparison.
Your Virtual Credit Manager
OCTOBER 17, 2023
Not being paid in full or in part causes a bad debt loss. The first step is to estimate how much bad debt loss you can absorb as a percentage of sales in a year. Conversely, if the profit margin is low, bad debt losses will have a much greater impact, and credit controls will have to be tighter.
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